How To Create Passive Income On Autopilot

Many people talk about the importance of having a “back end” to your business, and that’s where the real money is made. But yet, how many people actually implement a back end into their own business?

Over the last few months, I’ve been preparing and implementing my very own back end process for my business. The first time I went through the process I was shocked to realize how much money I was leaving on the table! It totally convinced me that creating the back end was the most important long term activity for me to engage in. So, I’ve made it my focus for the first half of 2011.

In today’s video, I talk about the the actual process I have gone through for creating the back end of my own business. Once you go through the same process, I am sure your eyes will be opened to the wonderful potential that a business back end can have.

Don’t forget to leave your comment below… you know how much I like them!

Gideon Shalwick

Winner Announced

Congratulations to Sue Carney! You’ve won the iPod Nano that I offered inside my previous video. I’ll get in touch with you via Facebook to grab your delivery details!

Transcript Of Today’s Video

Hi and welcome to another video. Of course my name is Gideon Shalwick and inside this video I want to talk about two main things. The first thing is I want to announce the winner for this little IPod Nano. There’s one lucky person who won it because they left a lovely comment on my blog. I’ll announce towards the end of this video who was the lucky winner.

The other thing that I want to talk about is something that I’ve been working on for the last three months. I’ve been developing the Back End of my business. Now there are 2 sides to your business. There’s the Front End and there’s the Back End and you need both to be successful.

The Front End is really where you focus on generating traffic, generating more leads and maybe having one product, one entry little product. But then your Back End is where you have all your other products and that’s where you make most of your money.

So I’m in the process now of setting up the full Back End. I’m currently at phase one of three phases. And I want to share with you the steps that I’m going through to achieve that. I want to talk about the kind of things you can expect for your own business if you build on your own Back End.

Basically, you don’t need much traffic to be able to make a significant portion of income. And the bottom line here is to automate the whole process so that you can have passive income coming into your bank account month after month.

So I will switch over to my computer screen now and draw some pretty pictures for you to show how I’m doing it in the plan or process that I’m going through for setting all these up.

I hope you enjoy this and remember to leave a comment below this video if you’ve liked what you’ve seen. And join in the discussion. Maybe, add your ideas and add to the knowledge of this whole process.

Talk to you soon.

Next up, I want to give you a quick overview of the process that I use for setting up the Back End of my business. There are five stages in this process and I will go through each one of them briefly, just so that you have an idea of a similar process you can create for yourself.

The first step, the first part of the process is to become very clear on your goals for what you want to achieve with this exercise. And for this I recommend you think about these particular goals: how much money you want to make from this? And from that you can figure out, how many sales you need to make of your product to be able to achieve that? And from sales, you can be even more advanced and figure, how manyoptins you need for your email newsletter to be able to get those number of sales? And from that, you can figure out how much traffic you want to get. Now this becomes the backbone of the rest of the process that drives everything else in terms of setting up your Back End. But that’s the first thing; become very clear on that because that will drive everything else.

The second thing you need to do is to create a funnel, a business funnel for your Back End. And basically, it simply looks like something like this where you have the World and maybe your Market—to be a little bit more specific than just the World—all the potential people who could come into your business and you have this funnel where you try and drive people through your funnel further and further as time goes by.

And over here you might have some free stuff that you’re giving away to attract people into your business. As soon as they get into your business, you might offer them a $97 product; and further down you might have a $247 product; maybe a $997 product; maybe a $5,000 product; and maybe a $15,000 product. This is just an example of a typical type of funnel that you can set up for your business. But I really encourage you to draw something out like this and make it visual so that you can be very clear on how the funnel works for your business.

The next stage in the process—No. 3 is to create a process or shall I say a flow chart of this funnel and how you want to implement it in your business. And all this really looks like is something like this where you have a starting point, you have these decision points, and you might have an ending point here, and you might have another decision point over here and another thing here.

Basically, I don’t want to go into too much detail here. Otherwise this video will get very long. But this could be, for example, your entry point into your business where you have the free stuff. This might be a $97 offer; and this might be your $247 offer—something like that—and maybe end it there. And you can be very creative with this process.

But the idea is that you become very clear on the kind of process that you want for your funnel. You know, how do you want to implement your funnel using this process?

And perhaps I can create another video at some other stage where it goes into more details with this process because this gets a little bit advanced. But the idea is that once you have this process figured out, you can look at different conversion rates in your business. Say for example, 1% of people here who optin for your free report or free stuff, they go for your $97 product. And maybe, say 10% of those people, go for your upsell over here.

Now once you have numbers here, say, if you know the numbers of traffic, you know the numbers of people opting in—you know, you can figure out how many one-time offer sales you’ll get. And you can figure out how many of these sales you can get if you work using this sort of percentages. And it’s very valuable once you have a chart like this to figure out the profitability of your business once you have this set up and running. And the beauty of this is that it’s automated. Once you have a process like this set-up, it’s all automatic and you can get that money coming in in a very passive sense.

Now I will just wipe this page because Stage 4 is—let me just go back to black again. The fourth stage is to create what I call a Web Representation. I will just write Web Rep there of your process. And you know, this will be just basically all the different pages that you need to create to be able to implement that process and you might have something like this. And this is really just actually physically drawn out all these different pages to represent that process that you designed.

So this here might be your Free Report that you’re giving away. And then they optin for that. They go to this next page. They confirm the email address. They get sent an email maybe. You know, you just draw that all out. Once they get the email, they get sent to the Free Report page with the One-Time Offer, for example. However you want to implement this.

But the idea is that you become very clear on each specific page that you need inside your website and so as the Back End to be able to implement this. And I’m using a technology called FusionHQ to help me do this, to set up the sales process. FusionHQ. I might have a link for it below this video. They mostly close because they are very cautious with how many people they accept so that they can make sure they look after their customers really well.

But that’s the fourth stage. You really draw out the whole process each and every single page and how it all would work together once it’s all set up. And you do this after you’ve created that process diagram in Step 3.

Then Step 5 is basically to create a Task List to implement this whole thing. And so the idea here is that you create a bunch of tasks so that you can implement all of this stuff here and at the end of it have the whole Back End set up.

And what I recommend you do here is brainstorm all these tasks, write them all out and once you’re done with it, prioritize them. Prioritize. And what’s cool about doing something like this, running out all the tasks, having a map of the whole thing, and having a process like I did in Step 3, you can then get other people involved to help you implement the Back End. And that’s in fact, what I’ve done and you know implementing it as—I’m recording this at this stage.

But I wanted to share this process with you. So let’s just quickly go over that again.

Step 1 is to become very clear in your goals for what you want to achieve. Start with how much money you want to make and then work backwards and try to figure out how much traffic you want.

Step 2 is to create your funnel of how you want your business funnel to look.

Step 3 is to create the Flow Chart of how that will be implemented. And it’s just a really nice way to visually represent the flow of information.

Step 4 is a step closer to implementation which is the Web Representation where you just draw out each and every single page that will be used to implement the process.

And Step 5, of course, is to create your Task List.

And once you have that, you’ve got a really, really nice blueprint for setting up your own Back End. Now this is a really, really quick video. And because this is on YouTube, I don’t want to go into much detail. But if you like this kind of stuff, let me know and if you got any questions, let me know by leaving a comment below. I would love to hear from you and I may create a longer, more detailed video about this whole process so that you get a much better idea of implementing this yourself too.

So what did you think? I hope you enjoyed that and I hope you can see the value in creating your own Back End process for your own business. It’s extremely valuable so that all the big gurus talk about—you need to have your Back End set up for your business. That’s where most of your money is for your business. If you don’t have a back end yet you’re leaving a lot of money on the table.

Okay, now to the winner. Well, if you want to find out who won this little IPod Nano, it will be in an annotation on this video right here. Ok so annotation right here of who won this and I’ll get in touch with you either through email or Facebook so that we can grab your contact details.

Also on my blog, if you want to see who the winner is, it will be at GideonShalwick.com under the post where this video is or below this video also maybe in the description area on YouTube if you’re watching this on YouTube. Please remember to subscribe to my YouTube channel. The subscription link will be just here once again. Click on that and subscribe to my YouTube channel so that you can automatically get updated for my videos.

Thanks again for watching. I look forward to creating some really awesome videos. And by the way, I’ve just moved into a new house. So the background you see here is all new and there’s a lot more space here. The previous house we had was very small, very tight. So I’m looking forward to creating some great videos for you in the future. Remember to leave your comment as well. I would love to hear from you. Talk to you soon.

About Gideon Shalwick

Gideon Shalwick is a YouTube and video marketing expert, and has figured out how to get a TON of attention using online video (with one YouTube channel reaching 10 million views!), and today, he's built a following of over 100,000 people for his business ventures, and 60,000+ people on this very blog, where he shares some of his most powerful video marketing strategies.

95 Responses to How To Create Passive Income On Autopilot

Fred

I like those kind of videos so keep em coming. I define myself as very creative, i like the learning process and the researching process but i have hard times implementing what i learned mainly because i learned so much that i don’t know where to start. LOL

The etch-a-sketch is a nice tool for live lectures and gives a personalised immediate feel to the video but don’t overuse it, there are other ways of getting words and pictures onto the screen in a video

Awesome episode again Gideon. Thx for the great info and for making it very simple and clear. Now it’s time to implement!
Question: who did your short video animation? The one you use as the intro and as the end. I’ve been looking for someone to do that for me.
Thx again!

Gideon…as usually you outperform and over deliver on information. This information is good and I can see where it can help you capture some of that money left on the table. However, as a customer when I get into this funnel, it is quite frustrating. Nothing is ever really free. The great information is always at the bottom of the funnel. Yes it is worth it to purchase that information if it’s valuable. It is very frustrating when on the front end you are promised information and you find out half way down the funnel and several hundreds of dollars you are not even close to getting what you need. Some kind of ethics has to be implemented on the top end of the funnel.

Just to let everybody know I am not implying anything concerning Gideon, but some other unethical individuals that exist in the industry.

You make a really great point. I totally agree with you – sometimes there seems to be so much fluff in content at the top end of the funnel.

Of course, my philosophy is to provide people with enough information at each level of the funnel to get great results. And for those who want to take it an extra further (which is always necessary for growing businesses), they are invited to continue down the funnel.

Thanks Gideon…just want to make sure everyone knows I do not think you are doing this…just a point to make. I have never felt that I was being forced into a product launch or recommendation from Gideon. I always feel that he recommends great product reviews and JV items.

Great Information. I am an Internet Marketing Newbie and I will be using this system to promote my Information Products. Thanks for sharing these valuable tips. You make me so proud to be on your subscribers list.

Hi Gideon, Congratulations on your new home and thanks for the video. I’m really just getting to know the territory, insofar as how this whole internet marketing world works. I, for one, would like to see a followup to this intro. While I suspect you’ve already have a plan formulated, I think that breaking down each of the elements into separate videos would be great for those of us on your list. Thanks from me as always. Steve

Hello Gideon, I recently saw you present at Our Internet Secrets and was very impressed with your information. The above information is so vital to me at the moment as I am in the design phase now and that 5 step demo has given me clarity. Thank you, I look forward to more ah – ha moments….cheers Doris.

Gideon, I have always been impressed by your willingness to share only the best, most relevant and highest impact information with your followers. You have my express appreciation and highest of compliments – by consistently easily justifying the attention of those who are fortunate enough to receive what you choose to share.

Would this qualify as a request for more of same?

Keep up the great work. You are a valuable asset and resource to the community.

I’ve been on your list for a long while now and I really enjoy your stuff! I’m currently in the middle of this exact process and seeing you simplify it the way you did was extremely helpful! Doesn’t seem so overwhelming after all! Thanks!

Thanks again Gideon. This has been really useful to think in terms of flow chart, and a physically drawn plan on how your readers flow through your system. It is strange that I haven’t really been thinking this way, since I am a big fan of the Mind Map.
Thanks. I need to get scribbling!
Paula

Hi Gideon
When I am ready the master appears certainly rings true for me as well. You wealth of knowledge always arrive … right on cue! As a newbie I would really love an expanded version of the Process flow chart. While I sort of get it your comments about using this chart to work out business profitability are intriguingly just beyond my current level of comprehension!
The information you present is making such a difference to my confidence levels and business abilities. Thank you and enjoy your lovely new home.

Wow, this was VERY informative and helpful! This is only the 3rd video of yours I’ve seen (I subscribed within minutes of viewing the 1st one because it was SO helpful). Thank you for sharing your knowledge with us:) I really appreciate it!

Thanks again for such clear and complete instructions Gideon.I believe there is another step beyond this as well and that is what are you planning to do to create further wealth for your family once the cash comes in. As in most cases we then turn into consumers as we don’t have a plan on what to do with the cash to continue to leverage our position and create real wealth. Just wanted to add another dimension to your wonderful information. regards
Colin Burr

Gideon,Thank you I’m only at the beginning.But with your help i’m sure I can do this.I may go over it 5 times but that’s just my short attention span lol.All your videos have been a great help.Thanks again and please keep sending videos. Kathy

Super solid dude, love seeing you implement your plan. Always refreshing watching your videos… you’re teaching people how to build a business (not a hobby) and most importantly you’re leading by example.

Thanks again for such clear and complete instructions Gideon.I believe there is another step beyond this as well and that is what are you planning to do to create further wealth for your family once the cash comes in. As in most cases we then turn into consumers as we don’t have a plan on what to do with the cash to continue to leverage our position and create real wealth. Just wanted to add another dimension to your wonderful information. regards
Colin Burr

This is a great, simple, and concise video with a really important message. It has been my experience that many times people start their online business at some other step besides making goals. They start with how to get traffic, or what shall I sell or some other place except at the beginning.

What a difference it makes to start at the beginning of a project rather than at the midpoint or at the end. Thank you again.

Hi Gideon,
Thanks again for choosing me as your nano winner! (commented earlier on your blog) So exciting! Can you suggest a way for me to get the shipping information to you? And perhaps some contest how to’s would be a good topic for a future vid. Thanks so much

Gideon, I bought PL3 from Jeff, but somehow I was not linked to your affiliate link. But they figured it all out and gave you credit. (Sorry about the comment, I could not find a Contact Us button on your site.) Anyway, I was wondering if you had some bonuses for those on your list who purchased PL3. If so, I’d love to get them. My email is above. Hope to hear from you.

Thanks for sharing I understand what you are saying but honestly have no idea how to work the backend process 😉 I have just today launched my own online shop and would love to know how to do this.

I just watched your other video about the hedgehog concept and I have definitely the passion for this and skills/experience in the field however online selling is kinda new to me I’m usually the buyer lol so I would love to learn how to make money from it

My philosophy is something like this: “The more value you create, the more value naturally flows back to you…” And that “value” may not always be in the form of money, but if you are a clever marketer, money is just a natural next step…

[..YouTube..] Hey guys I havenoticed the most reliable and easiest technique to make ＭＯＮＥＹ ＯＮＬＩＮＥ ＦＲＥＥ and it works copy the following web link and paste it in your browser you have got to check out this all I can say is Awesome!!!
ＭＹＭＯＮＥＹＮＯＷ.ＷＳ

Yet another excellent video Mr. Gideon Shalwick!!!! I would love to see or get a more in depth video on this process.

I understand the concept and in fact have a funnel in place. I would be more interested in where to find bigger ticketed items for my niche and the email follow up series. How many to send out, how the series and emails are structured, the content to use, when to sell and when not to sell.

Just to name a few items of interest in this back end sales stuff….

PS — Now where can I get my hands on the Rapid Video Blogging course? I am still kicking myself in the Arse for not taking you up on the offer when signing up….

HI Gideon, I really like your videos, do you think you would be able to make a video on a certain aspect of video online that I am working on(I am making a web series and need to know a few things) ? Inbox me if you are interested. thanks

Gday!I actually have been earning money from now employing the new PanCashful Secrets. It is a really simple way to make money, and the good thing about it is that it is newbie friendly. Pay bills, buy presents for family, and get started paying down that debt now! Just google PanCashful Secrets and listen to steps to start making income at this moment.Just search for “PanCashful Secrets” to find out more.

I’ve been working from home for 13 years and it takes first understanding there are no shortcuts and people need to throw the get rich quick thinking out the window. Earning six figures online is very attainable, however it takes time and hard work now so you can reap the benifits later… Most people earning a viable living from home have been at it for a while. They stick to one thing and really learn how to promote, capture and convert. Thanks for sharing.